bank examination definition

bank examination

Periodic inspection of a country's banks (and other depository institutions) by the examiners appointed by the country's central bank. The objectives of a bank examination include evaluation of (1) the quality of its management, (2) the quality of its assets (mainly, loans to customers), (3) its compliance with banking regulations, (4) its financial stability, (5) its lending policies, and (6) the transparency of its operations. See also CAMELS rating.

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